Network Marketing VT Review: 100% sale commission?
Network Marketing VT’s sales pitch is heavy on two points:
- you don’t have to personally sell anything (or even speak) to anyone to earn money
- the entire system is automated
Whilst both of these statements are technically true, throw in the fact that Network Marketing VT pay a 100% commission and between these three points you’ve probably now got more questions about the business than answers.
Read on for a full review of the Network Marketing VT MLM opportunity.
The Company
Network Marketing VT appears to have launched around January 2012, is based in the US state of Florida and is headed up by CEO and founder, Jason Spurlock (photo right).
Spurlock has been involved in numerous MLM companies before founding Network Marketing VT, including UProfitPro (co-owned and run with John and Shannon Lavenia) and The PowerLine 1000 Marketing System.
Spurlock also appears to have tried to launch a membership marketing site called ‘OBE Pro’ back in 2009 which appears to have never really gotten off the ground.
Spurlock’s involvement in these companies appears to be the inspiration behind Network Marketing VT.
The Network Marketing VT Product Line
Networking Marketing VT themselves offer no retail product or service. Instead, upon paying a membership fee to the members are given access to a series of training and marketing e-books.
Some of these e-books can be marketed under ‘Private Label Rights’ meaning that upon purchasing membership the company, Network Marketing VT authorise members to sell these e-books themselves at a retail level.
This is not done through the company however and is independent of the Network Marketing VT compensation plan.
The Network Marketing VT Compensation Plan
The Network Marketing VT compensation plan pays out 100% commission on $98 sales made within the company.
These $98 sales are membership to Network Marketing VT and the member that makes the sale earns the commission.
There is one catch though and that’s the 3-up commissions system Network Marketing VT use.
The 3-up system means that you pass up your first 3 $98 sales commissions to your upline. The tradeoff is that for each member you recruit, the first three membership sales they make automatically pass up to you.
This is in addition to your $98 commission for each member you personally recruit.
Joining Network Marketing VT
Membership to Network Marketing VT is $98 and an ongoing monthly charge of $19.95.
The monthly membership fee includes a replicated capture website and some marketing materials to market the Network Marketing VT income opportunity to new members with.
Conclusion
In mentioning that 100% of the sales commissions are paid out to members one of the first questions that comes to mind is ‘how does Network Marketing VT make their money?’
The answer is from the $19.95 monthly fee they’ve got everyone paying.
What we have is a simple commissions structure where 100% of the commissions members receive are 100% generated by the membership sales fee the company charges new members.
Network Marketing VT get their members to effectively gift (100% commission) eachother $98, and then charge them $19.95 a month for marketing materials on how to attract new members to receive $98 gift payments from.
Gifting is illegal in most countries, including the United States where Network Marketing VT is based.
Update 4th February 2013 – On the 23rd of January CEO and Founder Jason Spurlock announced on Facebook that Network Marketing VT had collapsed and was “closing its doors”.
Isn’t surprising that most supposedly MLM Pros are completely ignorant of the laws they need to operate under, despite years or decades of experience?
(translation: HIRE A LAWYER, YOU MORONS!)
Hello,
I don’t know what you mean by saying that NMVT is an “illegal gifting company”. “Gifting” means that ‘no products or services” are provided for the money gained by the receiver.
This is totally untrue concerning NMVT’s comp plan. Each paid members receives full access to a major list of products for their $98.00 fee. Where is the “gifting” you state in your review?
Solomon
@Solomon — 100% commission payout means the company earns nothing, so the members are paying each other. That’s a money circulation scheme, i.e. Ponzi scheme. Got it?
@Solomon
Considering I can’t purchase any of these said products from members without joining NMVT, what’s effectively being traded here is membership to the site.
Given that NMVT offer members a 100% commission on membership, this quite obviously qualifies as gifting, for which you provide an incorrect definition of:
In the case of NMVT, all that’s happening is one person joins and gifts their entire membership fee to the person that recruited them, with the company making its money from the monthly membership fee to pariticipate.
Total scam.
These guys can retail the product, I have seen them doing so, once they buy the product for $98, Over 60 software downloads, they can sell all of them, or part or individually. I can not see an issue with that.
Then why have the MLM aspect at all? According to you, the income is in selling the products. According to the website, you make money by getting others to buy in.
Sorry, your story doesn’t jibe with the official story.
What’s funnier, they don’t bother putting the stuff in a webpage, but rather, put it in video and webinar, as if they don’t want people to read about it at all.
How is this different from the Empower Network? I see your favorite guy Tony Rush is promoting this now? They are all claiming to be earning $625 per day from the EN?
@MB
No they can’t. You can’t purchase the product without joining the company as a member. Ergo it’s membership you’re buying and not a product.
@David
Empower network (from memory) charge a monthly fee to publish blogs on their domain?
You’re free to retail whatever products you want on said website.
I had this confirmed last night, the distributors pay $95 to start, they get an extensive list of products which they can then sell on their own websites and blogs at whatever price they wish to, they also advertise and sell the same deal to others for $95 and keep all the profit.
If you start and just want all the products for the $95 and just resell them, you don’t need to pay the monthly fee, just download all products to local drive and leave.
If you decide to participate in the network marketing part you pay the $20 per month for the sales tools and site.
@MB
The problem with 100% commissions is that it relegates the product value itself to 0% and is simple a direct transfer of money from the new member to the recruiting member (100% membership commission).
Leaving the company and breaking your membership is not the same as a true retail sale. In true retail the commission is earnt of the sale of the product. If joining and then leaving still generates a 100% membership commission for the recruiter, it’s still a membership commission.
With Network Marketing VT, you pay $98 dollars for the product suite. When you purchase the product suite, you get master resale rights to those products. You can bundle and sell them however you want. Thus, a product is being sold along with the full rights to resell.
Considering the fact that each person who buys the product suite has the master rights to resell it, at that point it is their product. They own it. Certainly someone who owns something can sell it.
It is no different when you buy the resale rights to a book or image, etc. Additionally, when a person pays the $98, they pay it directly to the person who sold them the product suite through that particular persons payment method of choice.
The $19.95 monthly fee is for hosting a web page and all the sales material available from NMVT. It also pays for the ongoing lead generation training and performance coaching.
People pay for coaching and web hosting all of the time outside of Network Marketing. The monthly fee is not paid to the person who sold the product suite but rather to NMVT.
The company is completely legitimate with both products and services.
The product suite, training and coaching are beneficial for any business looking to market online. I’ve made money outside of NMVT by applying the information I learned from products in the product suite.
You stated that you cannot buy the NMVT products without joining which is false. I will sell you the entire product suite right now for $75 without the the master resale rights.
Also, will never have to join NMVT, pay an admin fee; but, then you will not have access to any live ongoing training or get a website. You will simply get the products.
No you don’t. Within the Network Marketing VT opportunity all you can buy is membership. Network Marketing VT don’t have any products themselves.
Selling third-party products that have nothing to do with Network Marketing VT and are bundled with membership to the company doesn’t change the fact that within the Network Marketing VT opportunity at present all you can buy is membership.
Yes, so the only money that actually goes to Network Marketing VT is the monthly membership fee. That is the only thing purhasable from the company itself. Any other money is just shuffled between members.
a membership fee. You cannot earn within the Network Marketing VT opportunity compensation plan unless you pay this monthly membership fee.
Yes you’re free to sell third-party products to whomever you like outside of the opportunity but here we’re focusing on the opportunity itself and how commissions are earnt within the business model.
What you do outside of that is irrelevant. As it stands, you pay 100% of the sale price for the private label rights to an individual and as far as the company is concerned, the only way you earn a commission is by purchasing membership.
Membership alone is not a viable product.
Even Len Clements, MLM veteran consultant, says the X-up plan that this thing uses is, well, junk.
http://www.marketwaveinc.com/viewarticle.asp?id=4
This is true leverage. All the products have helped promote other business I’m in. Its awesome when receiving residual income and the “Wake up to success” calls are amazing.
Just for the personal training and LIVE webinars and top notch coaching is well worth $98 if you want to know how to make money online.
Hmm, paying $98 to learn how to participate in cash gifting…? Pass.
@ K. Chang,
Apparently Len’s site is in a bit of transition. If you go to the front page you’ll see the following note.
LOL how could this possibly be gifting silly people. As stated before the PRODUCT HERE is virtual training, personal development and access to a membership site.
IF there is NO PRODUCT then its considered a scam / pyramid scheme. Its the systems that work and people who fail.
People who complain are those that are not willing to implement the training thus leaving them to talk bad about the company.
Because 100% of what you pay as a member goes to the person who recruited you, with them paying for the ability to recruit new members and earn 100% of their membership fees too. This is called cash gifting.
When the product is membership and this is what commissions are paid out on, then it’s a pyramid scheme.
Nobody is complaining, other than yourself.
SOoo AAA, Amway, Herbalife, Avon, etc all pyramid schemes. They all have membership sites…
No idea what a “membership site” is, but all those companies have tangible products available for sale at a retail level.
(note that discussion about other MLM companies in an attempt to divert attention away from Network Marketing VT is offtopic).
Note that Network Marketing VT provides a service of Weekly LIVE morning calls, personal development, LIVE performance coaching and training that could help with ANY business either online or traditional brick and motor businesses.
Those of course are not “tangible” products, its a service the company is providing. So having tangible products or not it doesn’t matter. Also note you come up with things that go off topic..”tangible products” psshh lol
Network Marketing VT also requires to get a merchant account from an ISO. ISO’s only want to work with legitimate businesses.
and are therefore irrelevant. Membership is still what’s being bought and sold here and therefore paid a commission out on.
Or in other words a pyramid scheme with 100% commissions also entering cash gifting territory.
None of what you posted changes that.
LOL Tony Robins, Robert Kiyosaki, Donald Trump, Farrah Gray (All Millionaires) etc.. Conduct seminars that don’t have what you call “tangible” products in the seminars and THEY are basically getting paid 100% commissions from their customers.
Oh o.k so the greatest people who contribute the most in this world are pyramids schemes too lol.. never that about it that way D’oh :p
don’t run MLM companies that pay 100% commissions based on membership fees, and are thus irrelevant.
But please, keep trying to justify your participation in a blatant cash gifting pyramid scheme.
“LOL Tony Robins, Robert Kiyosaki, Donald Trump, Farrah Gray (All Millionaires) etc.. ” have all invested in MLM companies that teach business concepts and techniques
But please, keep trying to justify your participation in a blatant cash gifting pyramid scheme.
Cute, but I specifically stated that they don’t run MLM companies that pay 100% commissions on membership fees.
Selling tickets to training sessions is hardly the same as running a cash gifting pyramid scheme.
Fail again.
Didn’t one of Robert Kiyosaki primary companies declared bankruptcy the other day?
http://today.msnbc.msn.com/id/49393384/ns/today-money/t/rich-dad-poor-dad-author-files-bankruptcy/
LOL @ Oz no matter what anyone says you’ll always find a negative answer for something. Doubt kills. I rest my case.
@ K.Chang.. read the article.. not the title lol, clearly states “But apparently the fame went to his head because according to court papers obtained by the Post, Kiyosaki, who published his first “Rich Dad” book in 1994, never paid the Annex its rightful share”… He owed them money, it was his mistake 🙂
take care guys nice chatting with ya’ll 🙂
@Yolanda — you missed the point. Kiyosaki is not the financial guru the world made him out to be. He’s a motivational speaker like Tony Robbins, nothing more. Thus, using him as an “authority” validating MLM is a fail.
Besides, nobody’s questioning MLM, merely this training thing’s business and marketing model. Double fail for you.
If by “negative answer” you mean “facts”, then yes, you are correct.
I appreciate the facts don’t jive with the assertions that, based on the business model Network Marketing VT isn’t a cash gifting pyramid scheme, which you make without citing and facts.
Name dropping does not change Network Marketing VT’s business model, nor how its affiliates get paid.
Toodles.
Network Marketing VT is as much “LIKE a legitimate Multi Level Marketing business as a Volkswagen is “LIKE” a Porsche
Is the $98 a one-time fee or do you pay it monthly along with the $19.95 charge?
One time fee. You need to keep recruiting.
As far as I am concerned the owner Jason is the biggest SCAM artist on the net today!